Have a situation currently that would like you guy's advice on. Had a property with an out of state owner that was brought to me by boots on the ground here. Property looked like it could be a deal but had liens. Was told by boots on the ground that liens would be negotiated down with city, and after a month was told that liens had been reduced to $2000. Signed a contract with contingency about cost of liens and sent to title company, and also signed an assignment to a group of Hispanic investors (including race because of the language barrier). They signed the assignment at my title company which they use as well and put an earnest money deposit of $9,000 down for a $15,000 property, this was orchestrated by the title attorney. At the signing the investors asked if they could take a look to make measurements in the property, and I said that was okay. When the title came back, I learned that the liens on the house had not been negotiated down yet and I had been misled by the boots on the ground here. There is no timeline on if or when we will be able to reach a settlement for the liens and close on the deal. After this, I have come to find out that the buyers have started working on the property and by their estimate have already put $10,000 in to the property. I have not seen the property after this work has been done, but I did receive an alarmed call from a realtor who drove by the house that made it sound like some of the work has been pretty extensive. I definitely did not authorize this to the buyers, but it may have been the language barrier. I was only able to communicate with one of the buyers in fluent english and two of them could only speak spanish, we did have someone translating there as well but something may have been lost in translation.
What would you guys do in the situation? Am I at any liability if this deal goes south?